News updates March 31, 2022
1. Why Bitcoin Could Start Fresh Increase and Revisit $50K:
Bitcoin is consolidating below the $48,000 resistance against the US Dollar. BTC could start a fresh rally if it clears the $48,000 resistance zone.
* Bitcoin is stable above the $47,000 and $46,800 support levels.
* The price is trading above $46,500 and the 100 hourly simple moving average.
* There is a major breakout pattern forming with resistance near $47,700 on the hourly chart of the BTC/USD pair (data feed from Kraken).
* The pair could start a fresh increase if it manages to clear the $48,000 resistance zone.
Bitcoin Price Eyes Fresh Increase:
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Bitcoin price started a minor downside correction after it failed near the $48,200 level. BTC corrected lower and traded below the $47,800 support level.
There was a move below the 23.6% Fib retracement level of the upward move from the $44,469 swing low $48,200 high. The price even moved below the $47,000 level, but the bulls were active near the $46,800 and $46,500 levels.
Bitcoin is now trading above $46,500 and the 100 hourly simple moving average. On the upside, the price is facing resistance near the $47,600 level.
There is also a major breakout pattern forming with resistance near $47,700 on the hourly chart of the BTC/USD pair. The next major resistance could be near the $48,000 zone. A successful break and close above the triangle resistance and then $48,000 could start a strong increase.
The next major hurdle on the upside might be near the $49,200 level. Any more gains could send the price towards the key the $50,000 level.
Dips Limited in BTC?
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If bitcoin fails to clear the $47,700 resistance zone, it could correct further lower. An immediate support on the downside is near the $47,000 zone. The next major support is seen near the $46,800 level and the 100 hourly simple moving average.
The main support now sits near the $46,400 level. It is near the 50% Fib retracement level of the upward move from the $44,469 swing low $48,200 high. A downside break below the $46,400 support zone could send the price to $45,000 in the near term.
2. IMF: We Need a Lot More Work Done on Crypto Regulation;
The International Monetary Fund (IMF) says a lot more work needs to be done on crypto regulation. “We’ve certainly seen an increase in the use of cryptocurrencies before this war, and we’ve seen it happen more in emerging markets than in others,” said the deputy managing director of the IMF.
IMF Chief Kristalina Georgieva Pushes for Harmonized Crypto Framework.
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The top two leaders at the International Monetary Fund (IMF) discussed crypto regulation on the Foreign Policy Live podcast, published last week. IMF Managing Director Kristalina Georgieva and Deputy Managing Director Gita Gopinath were asked how governments should respond to the growing number of challenges facing the global economy, including cryptocurrency.
Georgieva explained that the IMF separates digital assets into three types: “crypto assets like bitcoin,” stablecoins, and central bank digital currencies (CBDCs). Regarding crypto assets, she said:
And I do hope that what we now see that there may be more attention to this topic translate into appropriate policy action,” Georgieva added.
As for stablecoins that are “backed by assets,” the IMF chief said, “if they’re properly regulated, they can play a very positive role.”
Georgieva further noted that a key role for the IMF is “to build tunnels that connect these different CBDCs to make that fragmentation less damaging for the world economy or even minimize it.”
IMF’s Deputy Managing Director Sees More Work Needed on Crypto Regulation;
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Gopinath, an Indian-American economist, has served as the IMF’s first deputy managing director since Jan. 21 this year. She was the IMF’s chief economist between 2019 and 2022.
We’ve certainly seen an increase in the use of cryptocurrencies before this war, and we’ve seen it happen more in emerging markets than in others.
opinath added: “I think parts of the world where there’s less financial inclusion, where people have less access to more regular forms of credit, cryptocurrency and other related forms of digital currencies can start playing a very important role.”
Regarding how much more crypto is being used due to the Russia-Ukraine war, the IMF deputy managing director admitted: “We don’t really have a clear picture at this time of how much of this particular war has triggered an increase in the use of cryptocurrencies, it’s not an easy picture to put together.” However, she noted: “But we are tracking this very closely, and I think in terms of the implications for the global economic order, I think that it’s fair to say that the recent events will accelerate consideration of central bank digital currencies more widely around the world.”
Gopinath continued, “We need to be particularly careful of the regulation that’s needed to ensure that the new forms of digital money don’t lead to evasion of capital risk flow restrictions, especially for emerging and developing economy,” concluding:
3. Indian Lawmaker Calls Out Indian Govt. Over Unfair Crypto Taxation:
Cryptocurrency has become a burning topic all around the globe. Nations are either creating regulations around it or banning it. In the same perusal, Member of parliament, Priyanka Chaturvedi questioned the Indian government‘s efforts over the much awaited Crypto bill. Earlier, another lawmaker requested the authority to raise the tax on crypto gains from 30% to 50%.
Govt unable to provide a proper framework:
Priyanka asserted that the Indian government is still unclear over its stance and approach toward the digital asset ecosystem. She said that India is the only country in the world who have brought a tax regime even before introducing the crypto Bill in the parliament.
The Lawmaker targeted the Indian Finance Minister and said that she is unclear over the legality of the cryptocurrency yet still they are imposing TDS and Tax on it.
She compared the current situation with the time when the internet was introduced in the country. At that time government wasn’t able to provide a proper enabling ecosystem for the brightest of minds. This resulted in a huge brain drain over time.
Govt failed to understand crypto:
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The government has failed to understand the intention, employment generation capacity, and emerging Web3.0 ecosystem, and that.s why they are taxing it without issuing any regulations around it, said MP, Priyanka Chaturvedi
She advocated that it’s our duty to provide citizens with a proper regulatory framework otherwise we might lose this opportunity also. However, she concluded by saying that ‘We are living in the world of web 3.0, either we choose to bite the bullet or we dodge the bullet.’
If we bite the bullet, we will be able to create an enabling ecosystem for the youth, empowering the economy. If we dodge the bullet then we can continue to enjoy that Indian minds are doing great abroad, Priyanka Chaturvedi added:
4. Phoenix Suburb Now Takes Bitcoin for Utility Bills:
Chandler, Arizona, will take PayPal-held bitcoin, ether and litecoin for water payments.
An Arizona city is allowing residents to pay their utility bills in bitcoin (BTC) and ether (ETH) in the latest example of municipal governments embracing cryptocurrencies.
Chandler, a Phoenix suburb, on Wednesday said that residents can pay in bitcoin, ether and litecoin (LTC) held in their PayPal (PYPL) accounts. But the city won’t ever touch those coins; its utility payments processor Invoice Cloud will sell it all for fiat, a press release said.
City Council member Mark Stewart said in a press release that it’s important to serve residents with the newest technology, such as crypto payments. But it was unclear at press time whether anyone in the city of 250,000 had begun using the option.
Chandler is not the first U.S. city to mesh crypto payments with utilities. Mercedes, Texas, voted to research the subject in November, months after Williston, North Dakota, brought its offering online. Both are orders of magnitude smaller than Chandler, a city of over 273,000.
Chandler’s choice of PayPal means that bill payers can’t use their self-custodied coins. PayPal’s crypto service is a closed loop that doesn’t let digital assets in or out.
PayPal and city officials did not respond to CoinDesk’s questions by press time.
5. The future of cashback: Companies adopts crypto back rewards for card purchases
Receiving cashback from your credit and debit card purchases has been a long-time benefit for credit card users. However, crypto entered the scene as projects start to implement crypto back rewards for card purchases.
6. Malaysia Detains Over 600 People for Stealing Electricity to Mine Cryptocurrency
In the past two years, law enforcement authorities in Malaysia have arrested hundreds of individuals for theft of electricity allegedly used to mint digital currencies. The country’s police force has also confiscated equipment worth millions of dollars.
7. Nearly 67% of UAE Residents are Interested in Crypto Investments, Study Shows
In the next five years, 67% of residents in the United Arab Emirates (UAE) are interested in entering the crypto space, according to a survey by British market research and data analytics firm YouGov.
Based on the study that surveyed 20,000 respondents in eighteen markets, YouGov noted that consumers in the UAE and India had the highest trust in cryptocurrencies at 40%.
In contrast, consumers in the western markets had a lower crypto trust rate. According to the report, only 6% of people in the United Kingdom, 9% in France, and 11% in Italy trusted cryptocurrencies.
8. Bank of Spain Warns About Risk of Extended Use of Unregulated Cryptocurrencies in the Country
The deputy governor of the Bank of Spain, Margarita Delgado, gave her opinion about cryptocurrencies and how they are increasing the risks in today’s economy. At an event hosted by PWC called “A climate of change,” Delgado explained that the continued and extended use of cryptocurrencies might bring different kinds of risks to the 12% of the population currently holding crypto.
